3 Reasons To Shift To SaaS Business Model, According To Managed IT Experts [DesignRush QuickSights]

The Software as a Service (SaaS) market is projected to reach $208 billion by 2023, as shared by Statista. Data by BlueTree supports this claim as 86% of businesses expect SaaS to meet most of their software needs after 2022.

DesignRush, a B2B marketplace connecting businesses with agencies, leveraged its 16,000-agencies-strong network for quick insights – or “QuickSights” – on the reasons organizations should shift to SaaS Business Model.

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1) QUICKER & CONSISTENT UPDATES

According to Lumens Dental Chief Marketing Officer Tomas Henkenhaf, organizations should shift to Business SaaS Model to enjoy quicker and consistent updates as well as higher customer retention.

“Due to the fact that SaaS providers are housed in a central cloud, businesses should switch to this business model,” said Henkenhaf. “They are in a unique position to distribute updates to users while also continuously updating their software. I chose this reason because SaaS solutions update and expand much more quickly than in-house hardware, which used to necessitate extremely labor-intensive processes for the end-user. Customer retention is also higher with the subscription model than with other company models since SaaS applications offer consistent updates.”

2) PREDICTABLE REVENUE

Velvetech CEO Yuri Yushkov shares that SaaS Business Model helps businesses predict revenue.

“One of the main reasons to switch to a SaaS Business Model is the predictability of revenue,” said Yushkov. “The business world is volatile and having an idea about the income you can expect in 3, 6, or 12 months can be game-changing as it lets managers better allocate resources and plan for the future.”

3) INSTANT & SECURE ACCESS

In the opinion of Aakash Goyal, partner at Cloudester Software, businesses should adopt the SaaS Business Model to enjoy quick and instant access to their applications.

“With the advent of all powerful web frameworks all anyone would need to work is a web browser, for instance, Chromebooks outsold Macs in 2020,” said Goyal. “All applications would be online and accessible through one login and device or location will not matter. The only way software vendors can keep up with this demand and scale is by adopting a SaaS business model. Instant and secure access, no long-term commitment and location/device agnostic tools are the future.”